BitGo and Derive Unveil Regulated On-Chain Derivatives Trading

BitGo and Derive have integrated their services to allow institutional clients to trade on-chain derivatives while keeping their collateral in a regulated bank. The integration separates trade execution from custody, ensuring that assets are not commingled with operational capital or other clients' deposits.

The BitGo Bank & Trust, a national trust bank regulated by the Office of the Comptroller of the Currency (OCC), will hold the collateral for eligible institutional clients. This approach eliminates counterparty risk and satisfies compliance requirements.

Derive's on-chain derivatives platform supports options and perpetual futures on major assets, including Bitcoin and Ethereum. The platform has seen a cumulative notional volume of over $30 billion.